Illustrate modern method of measurements, Financial Management

Assignment Help:

Q. Illustrate Modern Method of Measurements?

Holding Period Yield: The holding period yield is one of the modern techniques on Measuring return. It serves two purposes:

a) It measures the total return per rupee of the original investment.

b) Through this method, comparisons can be drawn of any asset's expected return.

The holding period yield can be used for any assets. For example, return from saving accounts, stocks money, real estate and bonds can be compared through this measure. The formula for the holding period yield is: Income payment received during the year in rupees + Capital change for the period in rupees Price in rupees of in original investment at the beginning of the period

Bonds Holding Period Yields

The holding period yields for bonds are measured in the following way: BHPY= Income payment during Period t + Change in price during period Price at the beginning of the period of  BHPY or Bond Holding Period Yields = It + P. Pt Contributing to risk are price and interest. All investments are risky, whether in stock or capital 1)1 a market or banking and financial sector, real estate, bullion gold etc. the degree of risk, however, varies on the basis of features of assets, investment instrument,. mode of investment or issuer of security etc.


Related Discussions:- Illustrate modern method of measurements

Explain the term- trade receivable days, Explain the term- Trade receivable...

Explain the term- Trade receivable days (turnover) [Yearend trade receivables/Credit sales (or turnover)] x   365days It is the average length of time taken by customers t

Expalin term commercial banks in financial system, Commercial banks Com...

Commercial banks Commercial banks allow deposits liabilities to make loans assets as well as to buy government securities. Deposits are wider in range including checkable depos

APC 308, the importance of a balanced capital structure and the problems wh...

the importance of a balanced capital structure and the problems which are associated with high levels of gearing

Illustrate the structure of financial markets, Illustrate the structure of ...

Illustrate the structure of financial markets? Structure of financial markets: Financial markets can be categorized onto the basis of several parameters as follows: the n

Historical weights, Can some one tell me the defination of Historical weigh...

Can some one tell me the defination of Historical weights and how we calculate the historical weight?? And given the diffrence between Historical weight Vs Marginal weights??

This case has been framed in order to test the skill, Ask ques1. How would ...

Ask ques1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit? 2. Suggestion rega

Net present value of of the investment, Air Manchester (AM) is a new ...

Air Manchester (AM) is a new airplane manufacturer. It is considering investing in a software package, e.g. SAS, which would make its daily operations more efficient

Market, On January 1 a bond with face value of $1,000 is for sale in the ma...

On January 1 a bond with face value of $1,000 is for sale in the market.  That bond has a coupon rate of 6%, pays interest only once a year and the end of the year, and matures at

What is the exit strategy for equity stake venture, What is the Exit strate...

What is the Exit strategy for equity stake venture Exit strategy for equity stake venture capitalists and other financiers may include: (i) Selling their shares to the publ

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd